• by Michael Shields , September 3, 2004

With politics in the forefront at the moment, and passions and interests in world affairs perhaps reaching an all-time high among Americans, a magazine that offers a world view and a deeper understanding of issues would appear to be in high demand.

The Economist fits that description, and thus has received increased attention while growing its readership over the past several years. The magazine's circulation in North America is now at 460,894, according to the latest Audit Bureau of Circulations data. Just five years ago, that figure was roughly 319,000, representing an increase of nearly 45 percent.

This year, subscriptions are up 8 percent through June, with newsstand sales sneaking up an additional 3 percent. Momentum shifted for the ultra-serious, hybrid business and political title around three years ago.

"The last year has been good for us," Elizabeth O'Rorke, The Economist's chief operating officer. "But starting around 9-11, we had all our ducks in a row - we had been readying new promotions, an expansion, and a redesign. So we were ready."

Starting with Sept. 11, and continuing with the war in Iraq, The Economist has benefited from a desire among many Americans to receive what O'Rorke calls an "offshore" perspective. "That's a very important reason why The Economist is resonating with Americans," she said. "Discerning Americans want to hear both sides. [The magazine offers] a very balanced view."

It's often a very opinionated, in-depth view. The magazine frequently intersperses comments starting with "The Economist says." And it is not uncommon to see 2,000-word pieces on China or Sudan.

The title's reputation for aggressive reporting has even led to some trouble recently. The Economist issued a formal apology recently to Singapore's Prime Minister Lee Hsien Loong, over a reference in an article about his wife, agreeing to pay $229,420 in damages.

While the magazine becomes increasingly immersed in world affairs, O'Rorke says it is still considered a business magazine, though one with a different point of view than most business titles.

"It's not run-of-the-mill," she said. "We talk about forces in business, and how they affect the world of business, and the people of the world."

Within the business category, the magazine has been touting its strength on the newsstand versus other titles. Based on the latest ABC data, The Economist outsells Business Week, Forbes and Fortune, and even US News & World Report on the newsstand.

That success has been the direct result of improved distribution and newsstand positioning, according to Patrick Tregelles, newsstand sales director, including more prominent placement at airports and bookstores.

Plus, O'Rorke added, The Economist is reaching the newsstand much faster; where in the past, some issues would not reach readers until a week after they were published.

Still, despite all the recent growth, O'Rorke admits that The Economist can be difficult to translate to the uninitiated. "It's not an easy magazine to understand if you are a media buyer," she said, adding the magazine's very name can be deceiving. "The title has been difficult for years."

Yet ad buyers appear to be catching on, as pages have risen 11 percent through July.

In the near future, O'Rorke promised that expansion is a major initiative, including a goal of reaching a circulation of 800,000 in North America in five years. Such growth may necessitate a significant advertising investment. "We can't just do it by putting the magazine on the newsstand," she said. "I believe we will have a very aggressive branding effort."